Who is protected under the Fair Debt Collection Practices Act?

What is Fair Debt Collection Practices Act?

The Fair Debt Collection Practices Act 15 U.S.C § 1692 seq is a law enacted in 1978 to prevent personal bankruptcy, marital instability, loss of employment as well invasion of personal privacy. The reason the law was enacted was to protect against false , deceptive, misleading, harassing, abusive and offensive conduct during collection of consumer debts. The Fair Debt Collection Practices Act protect only consumer not a business.

What is consumer under the Fair Debt Collection Practices Act?

Pursuant to FDCPA section is 15 U.S.C § 1692a(3) Consumer is any natural person obligated or allegedly obligated to pay a debt.

What qualify under debt?

Debt is any obligation or alleged obligation of a consumer to pay money for goods or services that are primarily for personal, family or household purposes. The FDCDA section is 15 U.S.C § 1692a(5) Please know that FCDPA does not cover taxes and criminal restitution. Obligation must result from a consumer transaction. Please also know that FDCPA law does not cover businesses or individuals alleged to owe debts incurred in the operation of a business.

Who are debt collectors?

Debt collectors are people who uses any instrumentality of interstate commerce such as phone, mail, email, sms in any business, the principal purpose of which is collection of the debts of another. The FDCPA section is 15 U.S.C § 1692a(6).The debt collector ” title” applies to attorneys who regularly collect debts. Please take a look at Heintz v Jenkins, 514 U.S 291, 115 S. CT. 1489( 1995). It is also apply to creditors who hold themselves out to be debt collectors.The debt collector title does not apply to creditors. What is creditors? creditors is any person or entity that extends credit, creating a debt, to whom the debt is owed. The FDCPA statues is 15 U.S.C § 1692(a)(4). Examples: Bank of America, Wells Fargo. There is also limitation on any officer or employee of the creditor.

Who are also protected?

Companies with common ownership with a creditor, anyone attempting to serve legal process such as U.S Marshall, Federal Marshall’s as well officers or employee of the United states or any state.

For the abstract of FDCPA law click here and for the Full Fair Debt Collection practices Act click here

How to find payday loan

Seek Personal Loan from Prosper

If you are sick of paying high interest on Payday loan, you should seek alternative and obtain private Personal loan from Prosper.com. Prosper.com gathers some information about you, and then check your credit and verify your identity. You don't need perfect credit to borrow at Prosper.com, but good credit helps you improve your chances and save money.Prosper.com loans are unsecured. That means you don't have to pledge collateral to secure a loan, and you can use the money for almost anything.

Consider repair your credit score

Pay on time, every time. On time payments for all your bills, not just credit card accounts—are the foundation of good credit. If you never borrow, lenders have no way of knowing about your repayment habits. But borrowing too much could lead to bills you can't afford to pay. Pay more than the total minimum payment. Substantial payments are a good indication that you're willing and able to repay a debt. To help improve your credit score keep your debt under control. Keep at least one account open that you've had for a while. Use it occasionally, and pay it off in full. This will show lenders that you have a long history as a responsible borrower.For more information visit Lexingtonlaw.com

Look around for the best deal

Most lenders will not require a credit check, but do expect you to repay it on your next payday. In rare instances, you may be able to make payments over the next 3 paydays. You will sign a contract that state the terms.Find out if the lender will be contacting the credit bureaus prior to granting the loan if you want to keep this loan off your report.They all require direct deposit of your salary to your bank account. This way, they have leverage that gives them protection to get repaid.Ensure that loans are legally made to people in your state if you are applying through the Internet. Check our Research Center about Payday Loan offers

Requirements to obtain Payday loan

You must have steady income to qualify for a payday loan.

You must be able to show a verifiable source of recurring income payments to ensure you will be able to repay your loan.

You must have a checking or savings account that has been open for at least one (1) month before applying for a payday advance.

You must be able to be contacted after work.

You must be at least 18 years old to apply for a payday loan.

You must have a gross income of at least $1,000 per month.

You must not currently be a debtor in a bankruptcy case or presently intend to voluntarily file for bankruptcy relief.

You must not currently be a debtor in a bankruptcy case or presently intend to voluntarily file for bankruptcy relief.

You must be a resident of the state in which you applying for a loan, even if you complete an online application.

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